Buy. Your. Gas. Now.
September 11th, 2008 11:15 am · 14 comments
Yikes:
Gasoline prices jumped to unprecedented levels in the wholesale markets Thursday as Hurricane Ike tore across the Gulf of Mexico, threatening to strike Texas and its refineries.
The wholesale price of gasoline ranged from $4 to nearly $5 a gallon at the U.S. Gulf Coast on Thursday, said Tom Kloza, publisher and chief oil analyst of the Oil Price Information Service in Wall, N.J. That is up significantly from about $3 to $3.30 a gallon on Wednesday, Kloza said.
“We’re looking at the highest wholesale prices ever for a huge swath of the country,” he said. “People understand that regardless what happens with Ike, it’s going to shut down the biggest refining cluster for a period of five, six, seven days.”
So even as the price of oil itself dips, gas prices go up because of the impact of Ike on refineries. Meaning oil prices don’t actually have to go up for gas prices to increase to perhaps their highest levels ever - in that “unprecedented” wholesale prices are guaranteed to translate into unprecedented at-the-pump prices.
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Tags: Oil
There are currently 14 comments on this blog postView Topic | Comment on this blogRight of Smart
9/11/08
11:57 AM | Post your thoughts and comments about this blog post.
Has a liberal ever had a class in economics?
Do you have any idea how the market works or do you think George Bush is putting all that money in his own pocket.
I'm getting very tired of "oil companies are evil" game. You really need to understand the supply and demand theory. Econ 101. |
hoopiehater
9/11/08
11:59 AM | and weren't you ever told, don't believe everything you read and hear? Sucker! |
dc
9/11/08
12:06 PM | and weren't you ever told, don't believe everything you read and hear? Sucker! So are you saying that he is putting all that gas money in his pocket?? |
Right of Smart
9/11/08
12:09 PM | and weren't you ever told, don't believe everything you read and hear? Sucker!
If you have a theory on how you siphon money out of the system without showing anything on your taxes I’d love to hear it.
Or is this just a huge right wing conspiracy and George Bush and his family have billions of dollars in Swiss bank accounts.
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hoopiehater
9/11/08
12:14 PM | If you have a theory on how you siphon money out of the system without showing anything on your taxes I'd love to hear it.
Or is this just a huge right wing conspiracy and George Bush and his family have billions of dollars in Swiss bank accounts.
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oh money laundering never happens  I would never say the Bush family alone, but many, many others. Globally |
Brunhilde
9/11/08
12:32 PM | Has a liberal ever had a class in economics?
Do you have any idea how the market works or do you think George Bush is putting all that money in his own pocket.
I'm getting very tired of "oil companies are evil" game. You really need to understand the supply and demand theory. Econ 101.
I understand supply and demand. But the tactic in play is "whatever the market will bear." Supply and demand is used as an excuse, to mollify us. Record high prices at the pump have created record high profits for big oil.
It seems to me that if gas prices were really influenced by supply and demand, the price at the pump would go up when the station's underground tanks have to be refilled rather than whenever a hurricane is headed for the Gulf. |
Right of Smart
9/11/08
12:48 PM | oh money laundering never happens I would never say the Bush family alone, but many, many others. Globally
So when Exxon/Mobil is audited they have a line item for "slush fund".
Or do they have a guy go around and take cash directly out of register. |
Right of Smart
9/11/08
12:54 PM | Record high prices at the pump have created record high profits for big oil.
I can't stand this argument. But I'll explain it again.
Record high profits- Exxon is one of the biggest companies in the world. Please look at their stock price and dividend return over the last five years. I'd say good but not great.
How do you explain that. If it is so great buy it! XOM is the symbal $74.75 per share down $0.75 today. What a deal! |
gsmart
9/11/08
12:57 PM | Hm. And so at what point, in the original post, did I say IT'S ALL DUBYA'S FAULT!!!
This has nothing to do with that. Rather, it has to do with the reality that even when oil prices fall, gasoline prices will not necessarily follow. And it also gives lie to the idea that all we need to do is "drill baby drill," for here is a situation in which supply of oil is not an issue; the ability to refine the oil into gasoline is the issue. |
Big Dog
9/11/08
12:58 PM | Its funny to me that people !profanity! and moan about gas prices but will gladly pay $4 for coffee, $2 for bottled water etc.
From what some of my friends tell me, Exxon is a great place for engineers and other scientists to work. Good pay, good benefits and very interesting, challenging work. I would rather support a company like that than Walmart which pays their employees nothing.
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Shawn
9/11/08
1:02 PM | Has a liberal ever had a class in economics?
Do you have any idea how the market works or do you think George Bush is putting all that money in his own pocket.
I'm getting very tired of "oil companies are evil" game. You really need to understand the supply and demand theory. Econ 101.
When you have organizations like OPEC and Nationalized Oil Companies controlling the supply of oil, the economic principles of supply and demand go out the window. These organizations are manipulating the markets. Oil is non-perishable, and it isn't going anywhere until its pulled out of the ground. As a result they can very easily keep the price of oil artificially high.
Later...Shawn
Later...Shawn |
littledutchboy
9/11/08
1:03 PM | Hm. And so at what point, in the original post, did I say IT'S ALL DUBYA'S FAULT!!!
This has nothing to do with that. Rather, it has to do with the reality that even when oil prices fall, gasoline prices will not necessarily follow. And it also gives lie to the idea that all we need to do is "drill baby drill," for here is a situation in which supply of oil is not an issue; the ability to refine the oil into gasoline is the issue.
Let’s rely on Sun and Wind power their output is constant isn’t?
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Brunhilde
9/11/08
1:08 PM | "So when Exxon/Mobil is audited they have a line item for "slush fund".
Or do they have a guy go around and take cash directly out of register."
I believe they call them bonuses.
I can't stand this argument. But I'll explain it again.
Record high profits- Exxon is one of the biggest companies in the world. Please look at their stock price and dividend return over the last five years. I'd say good but not great.
How do you explain that. If it is so great buy it! XOM is the symbal $74.75 per share down $0.75 today. What a deal!
The Board of Directors decides how much of the profit will be distributed as dividends. Are you saying they return 100% to investors?! |
Right of Smart
9/11/08
1:44 PM | Hm. And so at what point, in the original post, did I say IT'S ALL DUBYA'S FAULT!!!
This has nothing to do with that. Rather, it has to do with the reality that even when oil prices fall, gasoline prices will not necessarily follow. And it also gives lie to the idea that all we need to do is "drill baby drill," for here is a situation in which supply of oil is not an issue; the ability to refine the oil into gasoline is the issue.
Gil please, every post you make is an assault on the administration or the future administration. So forgive me for taking your thought to the next level.
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[size="3"]Brunhilde, every major bonus must be disclosed to the SEC.
And any major buys or sells must be reported also.
XON Mobil Exxon Down $1.12 $74.14
Happy days for the hate oil company crowd.
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